Despite its name, the Veterans Affairs Pension (“VA Pension”) does not act like a traditional pension and does not require a veteran have retired from the military. There are three primary requirements for the VA Pension:
- Service: A veteran must have served as active duty in the military, naval or air service and be discharged or released from service (provided there was no dishonorable discharge). A veteran must have served for at least 90 continuous days and one of those days must have been during a declared period of war. This does not mean the veteran had to be deployed, leave the country, or see combat.
- Disability: Anyone over the age of 65 automatically meets the disabled requirement. If a veteran is under the age of 65, the VA will assess the veteran and the disability must be considered permanent or total for that veteran to qualify.
- Money: The VA looks at two sources of money to determine if the pension is needed: income and net worth.
- Income includes money from a veteran and the spouse but subtracts unreimbursed medical expenses from the income. For example – Betty and Joe make $2,200 a month from Social Security but Joe must have an oxygen tank and physical therapy twice a week which totals $700 a month. The VA would place Betty and Joe’s income at $1,500 a month. Income must be under $2,100 a month for a veteran to qualify.
- Net Worth combines all assets the veteran and spouse own, including: IRAs, 401(k)s, bank accounts, CDs, etc. The VA considers how liquid an asset is and then reviews the total assets and the life expectancy of the veteran. For example -If Joe also had a retirement plan with $200,000 and was 90 years old, he would be denied as having too much net worth. There is no set number for net worth and the pension, but the lower the number the more likely the claim is to be accepted.
While this is a very basic summary of the VA pension process, it is easy to see from the examples that a veteran who has limited savings could easily be disqualified but would spend down all their assets during their lifetime. With proper planning, a veteran can reduce their net worth, shelter the funds, and assure they leave a legacy for the next generation. Let us help you make the best plan for your future. Call Grissom Law, LLC, we have the skills, experience, and expertise to assist you in preparing your plan.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney client relationship between you and Grissom Law, LLC.